After a massive upswing, the crypto markets are correcting as Bitcoin prices drop below $63,000 following a small correction. After hitting the highs at $160, the Solana price has plunged back below $155 and is also approaching the key support at $150. With this, a bearish perspective for the SOL price rally emerges, which may drop the value by another 15% to 18%, but only if the crypto fails to hold certain levels.
Solana’s price had risen pretty significantly in the past few months as the buying volume soared to a large extent. The daily chart of the token suggests the rally was stuck up within a bearish head & shoulder pattern and reached the neckline. The price was trading within an overall downtrend wherein it attempted to rise above the resistance. Unfortunately, the bears restricted the movement and are compelling the price to head back within the range.
Now that the levels are stuck within a crucial support zone, the recent price action suggests the price is prone to a fresh descending trend.
Regardless of the recent upswing, the SOL price continues to trade within a descending triangle and the recent rejection validates the pattern. The Ichimoku Cloud displayed the possibility of flipping into a bullish trend as the lead span B displayed a divergence. Besides, the RSI had surged above the descending trend line but has failed to remain elevated. While the selling volume has slightly raised, the possibility of plunging to the interim support close to $140.
At this stage, if the bulls display some strength, the possibility of a rebound may emerge, which may be restricted to $150. Otherwise, a failure may cause the token to test the lower support close to $125, which may attract the huge attention of traders and a massive influx of volume. This may cause the Solana price to trigger a strong rebound and prevent excessive drain, aiming to reclaim the lost levels.
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